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DD2 finance presenter: healthy fund balance cushions district against state budget timing
Summary
Finance presenter Miss Meunier told trustees the district has stronger assets and a growing fund balance (net change of $19 million year-to-date), reported $244.9 million in revenues through May and $225.8 million in expenditures, and warned state budget timing could delay some state dollars.
Miss Meunier presented the May financial report to the DD2 board on June 24, saying the district's total assets are higher than a year ago and that even with possible state-timing delays the district has a healthy fund balance to cover expenditures.
"Our total revenues through May of $244,900,000 whereas our expenditures through the May were 225,800,000.0," Meunier said, and she described a net change in fund balance this year of $19,000,000. She noted investment earnings exceeded expectations and that tax revenues for the year have been received as budgeted.
Meunier warned that because the state legislature and the governor were completing budget actions, some state dollars could be delayed into July, and the district should be prepared for temporary cash-flow timing differences. She projected a year-end fund-balance figure of about $63.9 million and noted the board's target fund balance is 18% of the budget (about $51.8 million).
Board members asked clarifying questions about accrual timing for teacher salaries and how June expenditures can appear larger due to annualizing payroll for a 12-month cycle; Meunier said June cash flow historically reflects that pattern and that the board had authorized a possible $4.4 million use of fund balance that was not needed this year due to higher revenues.
The presentation was informational; no additional board action on the finance figures was taken at the meeting.
